Definition
A legal arrangement in which a firm — typically a private company — obtains the right from the host country government to provide a particular service. Concessions can be used to create competition for the market. Examples of concessions include Build-Operate-Transfer (BOT) contracts and leases.
Source(s)
Adapted from Michael Gray Kerf et al., “Concessions for Infrastructure : A Guide to Their Design and Award,” World Bank, 1998, View the Website.